(c) Calculate the (equilibrium) values for Y₁, for t= 10, 11, 12, 13. Here you are being asked to calculate the path from the old equilibrium to the new equilibrium.
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just c) subpart only please
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- Which equation represents the macroeconomic equilibrium condition in the aggregate expenditure (AE) model?Consider a simple macro model with a constant price level and demand determined output. The equations of the model are c=90+0.36y I=155 G=290’T=125 and IM=0.06Y. A national income of 1100 results in desired aggregate expenditure of…Consider a closed economy to which the Keynesian-cross analysis applies. Consumption is given by the equation C = 200 + 2/3(Y – T). Planned investment is 300, as are government spending and taxes. What happens to unplanned inventory investment? Should equilibrium Y be higher or lower than 1,500?
- In the Keynesian cross model, assume that the consumption function is given by C = 20 + 0.8(Y- T). Planned investment is 200; government purchases and taxes are both 400. There is no foreign trade. An economist has claimed that the full employment level of output is 2,400. How much should the government expenditure or taxes rise or fall to achieve full employment?Which on is incorrect a) the level of autonomous consumption is determined by the non income determinants of consumption spending b) the impact of change in one or more of the non income determinants of consumption can be illustrated by a shift of the consumption function c)the level of autonomous consumption determines the position of the consumption function D) investment spending is the most stable component of aggregate spending in the evonomyAn economy is described by the following equations: C= 1500 + 0.75(Y - T) po = 800 G= 1500 X = 100 M=0 T=1500 †=0 Y* = 12000 a) Find a numerical equation linking planned aggregate expenditure to output. b) Find its exogenous expenditure and induced expenditure in this economy
- Assume the following model of the economy: Y = C + I + G C = 120 + 0.5(Y - T) I = 100 - 10r G = 50 T = 40 Md = Y - 20 r Ms = 600 P = 2 Derive the equation for the IS curve, showing Y as a function of r alone. Derive the equation for the LM curve, showing Y as a function of r alone. Solve for C, I and SUse the Aggregate Supply and Aggregate Demand Model below to answer thequestions that follow Examine the influence of government expenditure on investment in a nation.Use Jot Inc. Ltd a multinational construction company in which you are theChief Exec of the firm that that is highly diversified and receives funds toconstruct highways and other government-funded projects. Also, explain thefactors that cause the Aggregate Demand curve to be downward sloping leftto rightWhen the economy is operating at the equilibrium level of? GDP, we know that A. total planned real consumption expenditures equal real GDP. B. total planned real expenditures equal real GDP. C. planned real investment spending equals real net exports of zero. D. real net exports equal inventory changes.
- AD shocks change the equilibrium level of income(Y)and price(P). But the division of effects between P and Y depends on the shape of the SRAS curve. Using graphs show us what happens to P ,Y and the size of multiplier whena. SRAS is upward slopingb. SRAS is upward sloping and flatterc. SRAS is upward sloping and steeperd. SRAS is verticale. SRAS is horizontalThe national income model for an economy is represented as follows (units are in Ksh.M) Y = C + I + G + X – M I = 320 + 0.20Y G = 980 C = 540 + 0.80Y M = 640 + 0.25Y X = 850 Y = National income; C = Consumption; I = Investment; G = government spending; X = Exports; and M = Imports. Determine the following.TRUE or FALSE: This model has three endogenous variablesAnswer 1Choose... TRUE or FALSE: The country’s marginal propensity to save is 20%.Answer 2Choose... Autonomous level of importsAnswer 3Choose... Equilibrium investment Answer 4Choose... Equilibrium national incomeAnswer 5Choose... Net Exports (NX) Answer 6Choose... TRUE or FALSE: The economy is a net importerFrom the information below calculate aggregate demand; Consumption (C) = $200 + 0.6Y Investment (I) = $300 Government (G) = $100 Net Export (NX) = $50 Which one of the following statements about Consumption and Aggregate Demand is CORRECT when the economy achieves equilibrium GDP? a. One is 350 greater than the other b. One comprises the other c. They are valued at $1025 and $1375, respectively d. They are valued at $1375 and $1025, respectively e. They are both the same